East West Bancorp beats Q2 revenue  expectations

Overview

• East West Bancorp Q2 revenue of $703 mln beats analyst expectations, per LSEG data

• Adjusted EPS for Q2 beats estimates at $2.28, per LSEG data

• Co achieved record levels in total loans and deposits

Result Drivers

• LOAN AND DEPOSIT GROWTH - Co attributes record net interest income to $1 bln increase in average loans and deposits

• CREDIT TRENDS - Criticized loans and nonperforming assets declined, contributing to resilient credit trends

• CAPITAL STRENGTH - Tangible common equity ratio increased to 10%, supporting customer confidence and market opportunities

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for East West Bancorp Inc is $111.00, about 2.3% above its July 21 closing price of $108.40

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw7njh7sa